Li Auto (LI) stock price had a difficult year in 2024 as it crashed by over 47% from its yearly high. Its US ADRs were trading at $24.45, giving it a market cap of over $24.4 billion.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Li Auto , the largest of the emerging EV players in China, delivered 48,740 vehicles in November. While the number was up by 19% compared to last year, it marks a decrease of 5% from October.
Li Auto remains my top EV investment due to strong Q3 results, high vehicle margins, positive (operating) income, and robust delivery growth. Li Auto outperformed NIO and XPeng in vehicle margins, achieving 20.9% in Q3, compared to XPeng's 8.6% and NIO's 13.1%. Li Auto's Q4 outlook is favorable with strong delivery volume and revenue growth, making it a strong buy at a P/S ratio of 0.9X.
LI has retraced as expected, with the bulls seemingly defending the $22s as the new support level. Much of the tailwinds are naturally attributed to the double beat FQ3'24 performance, excellent October 2024/ YTD deliveries, and promising FQ4'24 guidance. This is significantly aided by LI's richer profit margins and growing net cash on balance sheet, allowing the automaker to sustainably fund its growth opportunities domestically/ internationally.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Li Auto , the largest of the emerging EV players in China, delivered 51,443 vehicles in October 2024, up 27.3% year-over-year. However, sales were down from 53,709 in September 2024.
There wasn't much optimism about the future of EVs today.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Li Auto's operating business is profitable, and it generated $1.3 billion in free cash flow in Q3.
Li Auto Inc. (LI) Q3 2024 Earnings Call Transcript